Sustained Revenue DeclineOngoing revenue decline and persistent losses erode market position and limit reinvestment capacity. Over months this weakens pricing power, scale benefits and credibility with customers, making it harder to rebuild growth without material strategic changes or capital support.
Negative Operating Cash FlowConsistent negative operating and free cash flows, coupled with reliance on financing, signal that core operations don't self-fund. This structural cash gap increases dependence on external capital, raises dilution or refinancing risk, and constrains sustained investment in product and sales.
High Leverage And Shrinking EquityA trend of decreasing shareholders' equity alongside high debt-to-equity raises solvency and covenant risk. Structurally, elevated leverage increases interest burdens and limits strategic flexibility, reducing capacity for M&A, R&D or cyclical buffering during multi-quarter revenue weakness.